Bank Stress-Test Data: Auguring Higher Payouts

Investors expect Bank of America, Citigroup, and others to boost their dividends after passing the latest regulatory stress tests.

Trust might seem like a poor word choice to characterize anything related to banks, but when it comes to dividends, it is time to adopt a more positive view.

Many banks are expected to increase their quarterly dividend payments soon, edging decisively away from the dark days of the 2007-08 meltdown. During the credit crisis, troubled banks were forced to cut dividend payments in return for taxpayer money to stanch self-inflicted...